Banking group Absa has piloted a new predictive alert service that notifies customers of potential shortfalls in their bank accounts and offers personalised options to help them manage their finances.
The idea is that the alerts allow customers to manage their monthly payment obligations and avoid unexpected problems.
The system has been tested with 50 000 customers in South Africa so far, according to Yasaman Hadjibashi, chief data officer at Absa parent Barclays Africa.
“The alert works by applying historical transactional behaviour to cheque accounts and assists customers who might not be able to make certain regular monthly payments, thereby helping them to avoid unexpected overdraft charges,” Hadjibashi said.
“The solution prompts customers, based on their individual circumstances, to transfer or deposit funds into their account or connect instantly to a dedicated Absa ‘colleague’ who will help them find the right solution.”
Of the customers who have been part of the pilot, 60% proactively took actions following the receipt of alerts. Research showed that 84% confirmed that they found the alerts useful, Absa said.
The bank said analytics is helping it build a “deeper understanding” of client behaviour and as a result it is able to offer customers more personal and relevant engagement.
Hadjibashi said that alerts normally focus on notifying customers when they reach or are close to preset minimum limits. But they often arrive too late for a client to take action appropriately, and typically without the right personal options.
“By predicting and better understanding our customers’ behaviour, we are able to proactively engage with them before their funds are depleted — and without the customer first having to set a minimum limit,” she said. — (c) 2016 NewsCentral Media